Casino operators can expect stringent probity checks

CASINO operators at the upcoming integrated resorts can expect probity investigations to be 'extensive and intrusive'.

Speaking on the sidelines of a training symposium for officers of the Criminal Investigations Department (CID) and Casino Regulatory Authority (CRA) yesterday, Lim Tung Li, manager of the investigations division at CRA, reiterated that the casino licenses are a 'privilege and not a right'.

'This is why we can enforce what some might consider extensive and intrusive checks on the operators,' he said.

Probity investigations into Marina Bay Sands and Resorts World at Sentosa were done in the run-up to the two operators winning the tenders to build their resorts.

But such investigations will be an ongoing process, and the next round of checks are expected to start when the operators apply for casino licences, which will be issued by CRA.

One issue that could be contentious is a recent investment by Genting Singapore's parent Genting Bhd in MGM Mirage.

The New Jersey Association of Gaming Enforcement in the US raised objections about MGM Mirage's Macau joint venture with Pansy Ho, the daughter of Macau's casino kingpin Stanley Ho.
Genting Bhd invested US$200 million in MGM Mirage - half of it on a 3.2 per cent equity stake and the other half on a bond issue.

Whether this will jeopardise Genting's standing with casino regulators is not known.

Mr Lim said enforcement agencies and regulators will share their expertise and information on industry players.

'An association with any company with possible criminal links would be something we would look into,' he noted.

On the merits of the symposium, Mr Lim said it gives CRA the opportunity to 'network' with other casino regulators.

'This allows us to understand what kind of checks they do, what they look into more often than not, and what are the red flags to look out for,' he explained. Forging links with 'strategic partners' is vital, he added.

Participants in the symposium included representatives of the Federal Bureau of Investigation, Nevada Gaming Control Board, Commission Against Corruption of SAR Macau and the Hong Kong Police Force's Criminal Intelligence Bureau.

At the opening of the symposium on Wednesday, CRA chief executive Raja Kumar said: 'I cannot over-emphasise the importance of forging such links. We live in a highly connected world, and crime is increasingly transnational. For the casino regulators, casino operators are expanding internationally. Both Marina Bay Sands and Resorts World at Sentosa have parent companies with an international presence. Hence, CRA has to liaise with fellow regulators where our operators have a presence.'

CRA is already developing protocols to prevent money laundering and screen key casino employees, associates and junket operators.

New South Wales casino supervising inspector P J Hennessey, who also attended the symposium, added: 'Whenever there is money involved, people will find a way to cheat the system.'